The boss of struggling steel giant Tata has blamed soaring energy costs and high business rates for crippling British industry.

Tata Steel chief executive Bimlendra Jha appeared before the Business Select Committee today

Tata chief executive Bimlendra Jha, whose UK operations are losing around £1million a week, said the firm’s energy charges are £40million more a year than those in Germany.

His comments came as discussions continue over the future of the company’s plant in Port Talbot, South Wales, with thousands of jobs at risk.

Mr Jha told members of the Business Select Committee today that high prices and a strong pound were hitting trade.

He said: “When you get headwinds such as a stronger currency, you only have to go over the Channel to buy products in an open market.”

Mr Jha said if the pension fund liability at Tata is not taken care of there would be no buyer for the business, adding: “If we don’t solve it we are staring at some very bad consequences for the taxpayer. We are staring at a huge economic and social disaster.”